SunCal stalls Oak Knoll project
According to the East Bay Business Times, Alameda Point developer SunCal has suspended operations at the former Oak Knoll Naval Hospital in Oakland due to Lehman Brothers’ bankruptcy. The firm was SunCal’s lender for the project, the Business Times’ Jessica Saunders reports.
Officials with SunCal had told Oakland city officials last month that Lehman’s bankruptcy wouldn’t jeopardize the project, Saunders reports.
SunCal spokesman Joe Aguirre said the suspension of the project won’t impact Alameda Point. Here’s what he said:
The bankruptcy filing by Lehman Brothers Holdings Inc. does not affect SunCal Companies’ development in Alameda. SunCal partners with various lenders and investors throughout the more than 50 developments in its extensive portfolio, and Lehman is not involved in Alameda Point in any way.
Every development has its own project-oriented partnership with its own investors, and each holding is wholly separate from the others. SunCal Companies, as its name indicates, is made up of many companies, and it is privately held.
We have a very strong relationship with our capital partner at Alameda Point, D.E. Shaw & Co., a $39 billion investment firm. Both SunCal and D.E. Shaw remain fully committed to this development.
The City Council, by the way, sitting as the Alameda Reuse and Redevelopment Authority, approved a new negotiating agreement on Tuesday night that transfers ownership of the project from SunCal to a new entity headed by Shaw. SunCal is slated to managed day-to-day operations.